ADM 1340 Chapter 5: Chapter 5- Merchandising Operations

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ultramarinecheetah338

17 Feb 2017

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ADM 1340 Full Course Notes

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Retailers- merchandising companies that purchase and sell directly to consumers. Manufacturers- companies that produce goods for sale to wholesalers, or others. Raw materials- are the basic goods and materials that are on hand and will be used in production but have not yet been sent into production. Work in progress- is that portion of inventory on which production has started but is not yet complete. Finished goods- inventory is manufactured items that are completed and ready for sale. Operating cycle- the time it takes to go from cash to cash in producing revenues. ***see illustration 5-1 on page 229 of the textbook*** 2- cost of goods sold- is the total cost of the merchandise that was sold during the period. 3- gross profit = sales revenue cost of goods sold. 4- operating expenses- expenses that are incurred in the process of earning sales revenue. ***see illustration 5-2 on page 230 of the textbook***

Related Questions

20.Cost of goods manufactured in a manufacturing company isanalogous to
a.Ending inventory in a merchandising company.
b.Beginning inventory in a merchandising company.
c.Cost of goods available for sale in a merchandisingcompany.
d.Cost of goods purchased in a merchandising company.

23.
Which of the following is not a manufacturing cost category?
a.Cost of goods sold
b. direct materials
c. direct labor
d.Manufacturing overhead

25.
The predetermined overhead rate is based on the relationshipbetween
a.estimated annual costs and actual activity.
b.estimated annual costs and expected annual activity.
c.actual monthly costs and actual annual activity.
d.estimated monthly costs and actual monthly activity.

27.
How have many companies significantly lowered inventory levels andcosts?
a.They use activity-based costing.
b.They utilize an enterprise resource planning system.
c.They have a just-in-time method.
d.They focus on a total quality management system.

28.
The sum of the direct materials costs, direct labor costs, andmanufacturing overhead incurred is the
a.cost of goods manufactured.
b.total manufacturing overhead.
c.total manufacturing costs.
d.total cost of work in process.

29.
Cost of goods manufactured equals $44,000 for 2008. Finished goodsinventory is $2,000 at the beginning of the year and $5,500 at theend of the year. Beginning and ending work in process for 2008 are$4,000 and $5,000, respectively. How much is cost of goods sold forthe year?
a.46500
b.42000
c.40500
d.47500